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497(e) File Nos. 2-90518 and 811-4006
SUPPLEMENT DATED JANUARY 2, 1998 TO PROSPECTUS DATED MAY 1, 1997
CITISELECT(R) FOLIO 200 CITISELECT(R) FOLIO 400
CITISELECT(R) FOLIO 300 CITISELECT(R) FOLIO 500
The Section of the Prospectus entitled "Prospectus Summary -- Exchanges" on
page 2 is amended to read as follows:
EXCHANGES: Shares of each Fund may be exchanged for shares of each other Fund
and for shares of certain other mutual funds managed or advised by Citibank if
shares of those funds are offered for sale in the investor's place of
residence. See "Exchanges."
The first sentence of the section of the Prospectus entitled "Exchanges" on
page 13 is amended to read as follows:
Shares of each Fund may be exchanged without charge for shares of each other
Fund and for shares of certain other funds managed or advised by Citibank, and
may be acquired through an exchange of shares of those funds.
The second sentence of the third paragraph of the Section of the Prospectus
entitled "Management -- Investment Manager" on page 15 is amended to read as
follows:
Prior to joining Citibank in 1995. Mr. Keblusek who has 25 years experience in
the investment management industry, was Senior Vice President and Director of
Portfolio Management for The Northern Trust Company with responsibility for
investment performance in the organization's High Net Worth, Corporate and
Institutional and Mutual Fund Group. Earlier in his career, Mr. Keblusek held
senior investment positions with Maryland National Bank and the National Bank
of Washington.
The section of the Prospectus entitled "Management -- Large Capitalization
Growth Securities" on page 15 is amended to read as follows:
Grant D. Hobson and Richard Goldman have been responsible for the daily
management of large cap growth securities since November 1997. Mr. Hobson is
responsible for managing U.S. equity portfolios for mutual funds, trust and
pension accounts of Citibank Global Asset Management and currently manages, or
co-manages, more than $4 billion of total assets at Citibank. Prior to joining
Citibank in 1993, Mr. Hobson was a securities analyst and sector manager for
pension accounts and mutual funds for Axe Houghton, formerly a division of
USF&G. Mr. Goldman is responsible for managing U.S. equity portfolios for
mutual funds and institutional accounts, and for quantitative equity research
for the U.S. institutional business of Citibank Global Asset Management. He
currently manages, or co-manages, approximately $4 billion of total assets at
Citibank. He joined Citicorp's Investment Management Division in 1985 and from
1988 to 1994 was responsible for running Citicorp's Institutional Investor
Relations Department.
The section of the Prospectus entitled "Proposed Restructuring" on page 20 is
amended to read as follows:
RESTRUCTURING: The Funds' Board of Trustees and shareholders have approved a
restructuring of the Funds in order to achieve economies of scale and
increased flexibility in the management of Fund assets. Each of the Funds no
longer invests in a single corresponding Portfolio (an "Old Portfolio") and
instead invests in multiple new or existing registered investment companies
(collectively, called "New Portfolios"). The New Portfolios correspond to the
asset classes of securities (e.g., large capitalization growth securities or
domestic fixed income securities) in which each Fund previously had invested.
Shareholders also approved amendments to the Funds' Declaration of Trust and
fundamental investment restrictions to permit assets of the Funds to be
invested in one or more investment companies and an amended and restated
Management Agreement for each Fund with Citibank, N.A. Under the amended and
restated Management Agreements, Citibank provides investment advisory services
to each Fund, including the asset allocation services previously provided to
each Fund's corresponding Old Portfolio. Under the amended and restated
Management Agreements, aggregate management fees paid to Citibank, including
each Fund's share of management fees paid by the New Portfolios of which
Citibank is the manager, will not exceed 0.75% of each Fund's average daily
net assets for that Fund's then-current fiscal year. This is the same
management fee which Citibank received under the prior Management Agreements,
including each Fund's share of its corresponding Old Portfolio's management
fees.
The Funds' Board of Trustees also approved a change in the fiscal year-end of
each Fund from December 31st to October 31st.
